The increasing adoption of Generative AI is set to boost productivity in India's $254 billion IT industry by 43%-45% over the next five years, according to a survey by EY India.
This surge will be driven by IT companies integrating GenAI into their internal processes and the transition of client projects from proof of concept to full-scale production.
Leading IT firms like Tata Consultancy Services (TCS) and Infosys have already observed increased AI adoption among clients. EY India’s survey found that 89% of IT firms are experimenting with GenAI, with 33% having moved beyond trials into full production. This rapid shift reflects growing confidence in AI’s ability to enhance efficiency and innovation.
Enterprises are moving beyond experimentation to deploying AI at scale. The study highlights that software development will experience the largest productivity gain (60%), followed by BPO services (52%) and IT consulting (47%). These three sectors alone will contribute 50%-60% of the total productivity improvement in tech services.
Beyond efficiency gains, GenAI is transforming the IT sector by lowering costs, improving customer service, and driving revenue growth. IT leaders believe AI-powered automation will enhance service delivery, optimize business operations, and improve decision-making.
With AI adoption accelerating across the industry, India’s IT sector is poised for a major transformation, reinforcing its position as a global technology leader. As GenAI moves from experimentation to large-scale implementation, the next five years will be pivotal in shaping the future of AI-driven innovation in Indian IT.
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